This course introduces investment decision making techniques. It focuses on corporate finance from an investor’s perspective. It also provides an explanation of financing options, including how financial markets operate and the main instruments of financial markets.

By the end of the course you should be able to understand:

1. The concepts of expected value, compounding and the time-value of money;

2. The relationship between risk and expected returns;

3. How financial assets are valued and be able to value shares and bonds;

4. The principles of discounting and how to select an appropriate discount rate for any private or public financial evaluation; and

5. The principles of portfolio diversification

In general, you be able to apply the principles of corporate finance to evaluate private and public sector investment proposals.

At the core of these outcomes lies a thorough understanding of the Capital Asset Pricing Model CAPM and the Capital Structure issue, so you should flag these concepts.

You are expected to achieve these outcomes in accord with the codes of ethics and behaviour endorsed by the UNSW

Distance mode only